What amounts should be recorded as cost of long-lived asset

Reference no: EM132091367

Question: 1. Define long-lived assets. Identify and describe each of the two common categories of long-lived asset.

2. Under the cost principle, what amounts should be recorded as a cost of a long-lived asset?

3. What is the term for recording costs as assets rather than as expenses? Describe how the decision to record costs as assets rather than expenses affects the balance sheet and income statement.

Reference no: EM132091367

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